Richmont Mines Inc. (TSX: RIC) (NYSE MKT: RIC) ("Richmont" or the "Corporation") announces operating and financial results for the three and six months ended June 30, 2016, driven by solid results from the Island Gold Mine. The Corporation will host a conference call and webcast on Monday, August 8, 2016, beginning at 8:30 a.m. Eastern Time (details below). (All amounts are in Canadian dollars, unless otherwise indicated.)

Second Quarter Highlights

- Company-wide production was 23,320 ounces for the quarter, an 11%
decrease over Q2 2015, primarily due to the depletion of the
Monique stockpile earlier this year. The Island Gold Mine produced
18,617 ounces of gold in the second quarter, a 24% increase over Q2
2015, driven by record underground and mill productivity of 911
tonnes per day and 878 tonnes per day, respectively, as well as a
positive reconciliation (mined vs. reserves) of 19%.
- Gold sold during the quarter was 24,888 ounces, a decrease of 10%
over Q2 2015, at an average realized price of $1,628 (US$1,263) per
ounce.
- Revenues for the quarter were $40.6 million (US$31.5 million),
consistent with Q2 2015.
- Company-wide cash costs[1] for the quarter were $903 per ounce
(US$701 per ounce), a decrease of 7% over Q2 2015 and below current
guidance estimates. Cash costs for the Island Gold Mine were $766
per ounce (US$595 per ounce), a 20% decrease over Q2 2015 and
significantly below current guidance estimates.
- Company-wide All-in-Sustaining Costs[1] ("AISC") for the quarter
were $1,330 per ounce (US$1,032 per ounce), in-line with Q2 2015
and within current guidance estimates. AISC for the Island Gold
Mine were $1,038 per ounce (US$806 per ounce), a 21% decrease over
Q2 2015 and significantly below current guidance estimates.
- Earnings were $2.7 million, 8% lower than Q2 2015, or $0.04 per
share (US$2.1 million, or US$0.03 per share).
- Operating cash flow (after changes in non-cash working capital) of
$14.9 million (US$11.5 million), or $0.25 per share (US$0.19 per
share), both in-line with Q2 2015.
- Richmont ended the quarter with an increased cash balance of $95.5
million (US$73.4 million), which includes net proceeds of $29.1
million (US$22.7 million) related to a bought-deal prospectus
financing completed on June 7, 2016 and $3.0 million of net free
cash flow[1].
- Based on the success of the Phase 1 exploration program at the
Island Gold Mine, the Corporation launched an aggressive 18 to 24
month Phase 2 drilling program of up to 142,000 metres, with an
estimated 39,000 metres to be completed in the second half of 2016.
- Based on the strong operational and cost performance in the first
six months of the year, Richmont expects to meet, or exceed, the
high end of production guidance and the low end of cash cost and
AISC guidance. The Corporation will determine whether a revision to
2016 guidance estimates is warranted following the completion of a
scheduled 3-week electrical upgrade at the Island Gold mill and the
commencement of stope mining in the Q Zone of the Beaufor Mine,
both expected in August. It is anticipated that any update to
guidance estimates would be released by mid-September.

[1] Non-IFRS performance measure. Refer to the Non-IFRS Performance Measures section contained in the Second Quarter Management's Discussion and Analysis.

"Positive grade and tonne reconciliations, as well as record mining and milling productivities at the Island Gold Mine have driven better than expected production and cost performance in the first half of the year. For the remainder of the year, we expect Island Gold to continue its strong performance as well as see improved performance from the Beaufor Mine as stope mining from the higher grade Q Zone commences." stated Renaud Adams, CEO. He continued, "Our solid cash position and cash flow generation is expected to fully fund both our accelerated development activities and the Phase 2 exploration program that are currently underway at the Island Gold Mine, both of which could position this core asset for significant production growth and mine life extension."

(1) Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the second quarter Management's Discussion and Analysis.

- At the end of the quarter, the Island Gold Mine reported more than
5.5 years (over 2 million man hours) of operations without
lost-time injury.
- The Island Gold Mine produced 18,617 ounces of gold (20,147 ounces
sold), an increase of 24% over the same period in 2015. As
previously disclosed, the mine plan for the quarter was focused in
lower-grade areas of the mine where ore development activities
primarily occurred in the lower grade extensions of the second
mining horizon. Overall, the operation reported a higher than
planned mined grade of 7.51 g/t. The forward looking 2016 mine plan
continues to forecast development and stope mining at grades of
between 7.0 and 7.5 g/t gold, using the December 2015 resource
model capped at 95 g/t gold.
- Underground productivity averaged a record 911 tonnes per day and
mill processing averaged record productivity of 878 tonnes per day.
The higher underground productivity and grade realized in the
quarter were primarily the result of a positive reconciliation
(mined vs. reserves) of 19%, comprised of 8% on tonnes and 10% on
grade. As compared to Q1 2016, there was a negative impact on mined
grades as a result of mining wider zones as compared to reserves.
It is expected that over the coming quarters drilling patterns will
continue to be evaluated to best optimize grade and tonnage
profiles.
- The percentage of higher cost development ore versus total ore
tonnes mined was 48% for the quarter, as compared to a planned 40%.
It is expected that during the second half of the year the
percentage of development ore mined will decrease to planned levels
of 40% as stope mining commences in the second mining horizon.
- Cash costs for the quarter were $766 per ounce (US$595 per ounce),
significantly below guidance estimates and a 20% decrease over the
Q2 2015.
- AISC per ounce decreased to $1,038 (US$806), a decrease of 21% over
Q2 2015. AISC for the quarter included $5.4 million of sustaining
capital, comprised of $2.0 million of underground development
costs, $0.8 million in electrical upgrades, $0.8 million of
delineation drilling, $0.3 million for capital lease payments and
$1.5 million on other assets.
- As previously disclosed, a 3-week mill electrical upgrade was
launched in late July and remains on track for completion in
mid-August.
- During the quarter, the Corporation spent $7.9 million in
non-sustaining project costs related to the accelerated development
of the deeper resources, which included advancing both the main
access ramp ($2.6 million) and the east ramp ($2.0 million), fixed
assets ($2.6 million), and exploration & delineation development
drift on level 740 ($0.7 million).
- The recent final update on the Phase 1 exploration drilling program
demonstrated the potential to grow production and increase mine
life both laterally above the 860 metre level, as well as in the
vertical extension below the 1,000 metre level. Exploration
drilling costs of $3.6 million (approximately 16,800 metres) were
incurred in the quarter, completing the Phase 1 drilling program.
The success of the Phase 1 program supported the launch of an
aggressive 18 to 24 month Phase 2 exploration program of up to
142,000 metres of drilling.

(1) Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the second quarter Management's Discussion and Analysis.

- At the end of the quarter, the Beaufor Mine reported 2.5 years of
operations without lost-time injury.
- Production for the quarter was 4,703 ounces (4,741 ounces sold), a
34% decrease over Q2 2015, primarily as a result of lower than
expected tonnes and grades mined in secondary Zones M-MF and 12.
- Development of the higher-grade Q Zone advanced during the quarter
with stope mining planned for the third quarter, which should
contribute to increased grade and ounces produced in the second
half of the year.
- Cash costs for the quarter were $1,486 per ounce (US$1,154 per
ounce), a 40% increase over Q2 2015. Cash costs are expected to
decrease as stope mining in the higher grade Q Zone begins in the
third quarter.
- AISC per ounce for the second quarter were $1,899 (US$1,475), a 51%
increase over Q2 2015. Sustaining costs for the quarter were $2.0
million, which included $1.0 million for capitalized underground
mine development, $0.4 million for expensed exploration costs and
$0.6 million of other sustaining costs. AISC are expected to
decrease as higher grades stope mining in the new Q Zone begins in
the second half of the year.
- Underground productivity at the Beaufor Mine averaged 286 tonnes
per day, modestly lower than planned levels.

Second Quarter and Recent Corporate Highlights

- On June 7, 2016, Richmont announced the completion of a bought-deal
prospectus offering (the "Offering"). Pursuant to the Offering, the
Corporation issued 2,990,000 common shares at a price of $10.40 per
common share for gross proceeds of approximately $31 million that
included 390,000 common shares issued pursuant to the exercise in
full of the underwriter's over-allotment option.
- Effective Friday, June 17, 2016 Richmont was added to the S&P/TSX
Global Mining Index and the S&P/TSX Global Gold Index.

Richmont Mines has produced over 1.6 million ounces of gold from its operations in Quebec, Ontario and Newfoundland since beginning production. The Corporation currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 35 years of experience in gold production, exploration and development, and prudent financial management, the Corporation is well-positioned to cost-effectively build its Canadian reserve base and to successfully enter its next phase of growth.

Forward-Looking Statements

This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. Except as may be required by law, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Richmont Mines' Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made as of the date of this news release.

Cautionary note to US investors concerning resource estimates

Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by the SEC. The Reserve and Resource estimates in this press release were prepared in accordance with Regulation 43-101 adopted by the Canadian Securities Administrators. The requirements of Regulation 43-101 differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC").

U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC's web site: http://sec.gov/edgar.shtml.

Regulation 43-101

The geological data in this news release has been reviewed by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc., and a qualified person as defined by Regulation 43-101.